February 6, 2019 – The Debtors notified the Court hearing the Nighthawk Energy case that their First Amended Chapter 11 Plan of Liquidation became effective as of February 6, 2019 [Docket No. 281]. The Court had previously confirmed the Plan on November 28, 2018 [Docket No. 262].

On April 30, 2018, Nighthawk Energy and wholly-owned subsidiary Nighthawk Royalties filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, case number 18-10989. The Company, which engaged in the exploration, development, production and sale of hydrocarbons, noted estimated liabilities of between $10mn and $50mn, notably including a $23.25mn bank debt owed to the Commonwealth Bank of Australia (“CBA”).

On June 28, 2018, the Court approved the sale of substantially all of the Debtors’ assets to Polaris Production Partners LLC (the stalking horse bidder in a cancelled, one-horse auction, and designee of Fulcrum Energy Capital Fund II, LLC) for cash consideration of $18mn. The sale to Polaris closed on July 18, 2018 and ultimately $15mn of the sales proceeds were remitted to CBA.

As previously reported, the Plan provided the following detail as to classes, claims, voting rights and projected recoveries:

Class 1 (“Other Priority Claims “) is unimpaired, deemed to accept and not entitled to vote on the Plan. The projected amount of claims is $0.00 and projected recovery is 100%.

Class 2 (“Senior Secured Claims”) is impaired and entitled to vote on the Plan. The projected amount of claims is $0-$6,250,000 and projected recovery is 0-100%.

Class 3A (“Unsecured Claims against Nighthawk Energy”) is impaired and entitled to vote on the Plan. The projected amount of claims is $36,423,546.30-$42,673,546.30 and projected recovery is 0-100%.

Class 3B (“Unsecured Claims against Nighthawk Royalties”) and Class 3C (“Unsecured Claims Nighthawk Production”) and Class 3D (“Unsecured Claims against OilQuest”) are impaired and entitled to vote on the Plan. The projected amount of claims is $0-$6,250,000. and projected recovery is 0-100%.

Class 4 (“Intercompany Claims between the Debtors”) and Class 5 (“Existing Equity Interests in the Debtors”) are impaired, deemed to reject and not entitled to vote on the Plan. Projected recovery is 0%.

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